Title 03 Administration and Personnel
Chapter 03.05 Spokane Employees' Retirement System
Section 03.05.040 Contributions
- The normal rates of contributions of members are those adopted by the board, subject to the approval of the City Council. The rates so adopted remain in full force and effect until revised or changed by the board in the manner provided in chapter 4.14 SMC.
- Contributions by Members.
Prior to January 1, 2009, each member shall contribute six and seventy-two one-hundredths percent (6.72%) of the member’s compensation. Effective January 1, 2009, the rate of contribution was prospectively increased to seven and seventy-five hundredths percent (7.75%). Effective September 1, 2014, the rate of contribution is prospectively increased to eight and twenty-five hundredths percent (8.25%). Effective December 17, 2017, the rate of contribution is prospectively increased to nine percent (9.00%). Although designated as employee contributions that reduce the member’s salary, the City government (and, where applicable, SREC and SPFD), as the employer, shall pay such contributions to the retirement fund pursuant to Internal Revenue Code section 414(h). The member will not have an option of choosing to receive the contributed amounts directly instead of having them paid by the City government (and, where applicable, by SREC and SPFD) to the retirement fund. The picked-up contributions will be included as Social Security wages up to the Social Security wage base, and will also be included in calculating the member’s final compensation. It is contemplated that the aggregate normal contributions made by the City (and SREC and SPFD) into the retirement fund will be enough to properly fund the retirement benefits payable hereunder.
- Contribution by the City Government.
The City government will make contributions in an amount that matches the members’ (other than SREC Members’ and SPFD Members’) in-lieu contributions. SREC will make contributions in an amount that matches the SREC Members’ in-lieu contributions. SPFD will make contributions in an amount that matches the SPFD Members’ in-lieu contributions.
- Contribution Rate Review
In the event that an official actuarial report for a given fiscal year, prepared at the direction of the board, indicates that the Actuarially Determined Employer Contribution Rate (within the meaning of GASB) is greater than the City’s (and SREC’s and SPFD’s) contributions, the City shall, subject to approval by the board and City Council, prospectively increase both the employee contribution rate and the City’s (and SREC’s and SPFD’s) matched contribution rate by up to 1.00% of the member’s compensation without further bargaining unit negotiation. Increases are limited to once per fiscal year. In the event that an official actuarial report for a given fiscal year, prepared at the direction of the Board, indicates that the retirement system is fully funded (within the meaning of GASB), the City may, subject to approval by the board and City Council, prospectively decrease both the employee contribution rate and the City’s (and SREC’s and SPFD’s) matched contribution rate by up 1.00% of the member’s compensation without further bargaining unit negotiation. Decreases are limited to once per fiscal year.
- Subject to the provisions of this chapter and chapter 4.14 SMC, the board certifies to the head of each office or department the normal rate of contribution for each member provided for in subsection (A) of this section. The head of the department applies such rate of contribution to the compensation of each and every payroll; and each of said in-lieu amounts are paid by the director of accounting and grants into the retirement fund, hereinafter provided for, and are credited by the board, together with contribution interest, to an individual account of the member for whom the contribution was made. Contribution interest is credited to each individual account at such periods as the board may determine. Any in-lieu payments contributed by the City (and SREC) are fully and immediately vested for the benefit of the employee immediately upon payment into the retirement fund.
- The director of accounting and grants transfers to the retirement fund an amount equal to the aggregate normal contributions as soon as administratively practicable following each payroll period.
Date Passed: Monday, June 29, 2020
Effective Date: Wednesday, August 5, 2020
ORD C35914 Section 3
